Great Lakes Dredge & Dock Corporation (GLDD) yesterday reported financial results for the quarter ended March 31, 2018.
For the first three months GLDD reported revenue of $146.6 million, net loss from continuing operations of $9.3 million and Adjusted EBITDA from continuing operations of $11.7 million.
According to the company, excluding the charges relating to GLDD’s previously announced restructuring, for the three months ended March 31, 2018, Great Lakes reported net loss from continuing operations of $4.6 million and Adjusted EBITDA from continuing operations of $15.1 million.
These results compare to revenue of $170.6 million, net loss from continuing operations of $4.6 million and Adjusted EBITDA from continuing operations of $11.7 million for the same quarter in 2017.
Chief Executive Officer Lasse Petterson commented, “ We are now seeing that our restructuring plan is starting to yield significant results with first quarter 2018 Adjusted EBITDA excluding restructuring increasing to $15.1 million from the prior year quarter of $11.7 million even though revenues were down quarter over quarter. ”
“ During the first quarter, we completed the run in period for the Ellis Island hopper dredge and she is now performing at her full designed capacity ,” added Petterson. “ She has contributed $14 million of revenue on the Mississippi Coastal Improvement Program (MSCIP) project during the first quarter and is on track to deliver her expected annualized EBITDA results .”
Awards during the quarter included $65 million of options on the Charleston II project which at $278 million is now fully awarded. GLDD has mobilized on the project and rock dredging work is underway.
“ The first quarter bid market was active and we currently have $151 million in pending awards that we expect to add to backlog during the second quarter. We continue to be optimistic about the domestic bid market for 2018 and expect bids to be issued for the first phase of the Corpus Christi deepening, the Tampa Big Bend Channel deepening and the MSCIP II coastal protection project in the next few months. Further phases of the Jacksonville, Savannah, Charleston and Corpus Christi port deepenings are expected to tender later this year ,” said Petterson.
Segment Update
For the three months ended March 31, 2018, the dredging segment reported revenue of $133.6 million, gross profit of $14.1 million and operating income of $2.2 million.
Excluding the charges relating to GLDD previously announced restructuring, for the three months ended March 31, 2018, the dredging segment reported gross profit of $18.4 million and operating income of $ 6.4 million.
These results compare to revenue of $153.1 million, gross profit of $13.1 million and operating income of $0.7 million for the same quarter in 2017.
Mr. Petterson added, “ We expect the domestic dredging bid market to remain strong in 2018 with multiple port deepenings coming to bid in the next few months. During the first quarter of 2018, we were awarded 24% of the addressable market, including $65 million of options on the Charleston II project. ”
“ In addition to the $79 million of domestic dredging awards in the first quarter, we also currently have pending awards of $151 million that we expect to add to backlog in the second quarter. We are pleased with our win rate year to date through April 2018 and expect as of second quarter for it to be consistent with our three year average of 46% ,” concluded Chief Executive Officer Lasse Petterson.